Top South Korean Exchanges Come to Together to Fight Money Laundering

The
threat of money laundering in the crypto space has been a
long-standing fear for authorities for a long time and over the
years; crypto exchanges have made significant progress in tackling
the problem. In an unprecedented move, the biggest crypto exchanges
in South Korea have now come together in an initiative that seeks to
combat the scourge of money laundering. Upbit, Bithumb, Korbit, and
Coinone announced last week that the four exchanges are going to
establish a hotline so that they can share real-time information
regarding any eyebrow-raising trade on their exchanges.

South
Korea is one of the biggest crypto markets in the world, and despite
efforts from crypto exchanges, money laundering remains a hazard.
According to the announcement made by the exchanges, they will
monitor transactions that they suspect of being part of money
laundering operations, pyramid schemes, predatory lending, and other
associated malpractices. This move comes following calls from the
Korean Bar Association in November last year to introduce blockchain
regulations and ensure that no illegal activities take place about
cryptocurrencies. The Korean Bar Association President Kim Hyun had
said at the time, “We urge the government to break away from
negative perceptions and hesitation, and draw up bills to help
develop the blockchain industry and prevent side effects involving
cryptocurrencies.”

Over
the past year or so, the problem of money laundering related to
cryptocurrencies has been taken very seriously by the South Korean
authorities. In June of 2018, the financial regulator of the country
ordered banks to be far more stringent in their monitoring of bank
accounts that are tied to accounts in crypto exchanges. The setting
up of the hotline by the 4 major cryptocurrency exchanges in South
Korea is definitely a step in the right direction for the future of
the industry in the country. It is believed that the absence of such
fraudulent transactions in the exchanges will also encourage newer
customers to invest in cryptos.

In
the same announcement, it was also stated that the 4 exchanges would
also manage a database of dodgy wallets so that they can identify
scam artists who often use several exchanges to facilitate big
transactions as part of their elaborate scams. Last but certainly not
the least, the 4 exchanges also urged other exchanges in South Korea
to join their initiative, and if that happens, then the South Korean
crypto market will be better off.

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